The founder of Tron, Justin Sun, finds himself at the center of a new storm. On Thursday evening, World Liberty Financial (WLFI), the DeFi protocol backed by the Trump family, blacklisted his wallet, freezing the equivalent of several hundred million dollars in WLFI tokens. Sun, furious, demands the immediate lifting of this freeze, which he deems “unjustified“.
I invested capital, trust, and support to build a strong ecosystem. My tokens have been unreasonably frozen.
For him, these assets are “sacred and inviolable,” and blocking them amounts to a violation of the very principles of blockchain.
Massive Transfers of WLFI Causing Doubt
The freeze came hours after a transfer of 50 million WLFI tokens (nearly 9 million dollars) from an address identified as belonging to Sun. The funds ended up in a hot wallet linked to HTX (formerly Huobi), a platform where Sun serves as an administrator.
Simultaneously, other movements added fuel to the fire. Another 60 million WLFI tokens, over 11 million dollars, were transferred from the same hot wallet to an HTX Gnosis Safe Proxy. Some of these tokens even reportedly flowed to Binance, fueling suspicions of massive sales.
In a scenario of significant flows to exchanges, involving BitGo and Flowdesk, these operations coincided with strong selling pressure. As a result, WLFI plummeted by 24% on Thursday, bouncing slightly to trade around 0.19 dollars on Friday morning.
Sun Pleads Innocence
Facing accusations, Sun vigorously defends himself.
Our address only conducted small deposit tests followed by fund dispersion. No purchases or sales took place; it is impossible for this to impact the market.
For Sun, this is a direct violation of investors’ rights. He calls for transparency and trust, essential conditions in his view to build a “truly great financial brand“. He even punctuated his messages with a resounding “I am innocent“, aimed at putting an end to rumors.
Political Support Complicating the Issue
The case takes on a broader dimension. WLFI, launched this week, is not just any project: it is directly supported by the Trump family. Sun, one of its major investors, injected a whopping 75 million dollars into the token, while committing to buy $100 million worth of the memecoin TRUMP.
In return, World Liberty Financial acquired millions of dollars’ worth of TRX, Tron’s native token, earlier this year. A game of crossed alliances that now makes the situation explosive.
A Crisis of Confidence for World Liberty Financial
If WLFI has not yet officially spoken, freezing the assets of one of its biggest investors raises serious questions. The community wonders: why freeze Sun while other massive transfers continue to fuel market volatility? The response from WLFI could be decisive. Beyond Justin Sun’s fortune, the project’s credibility is at stake. In the ruthless crypto world, a communication error can sometimes be enough to break trust and shake a still budding token.
